Bitcoin sell pressure threat when BTC moves in 2 days at $1.7B
The recent shift of $1.7 billion of “sleepy” Bitcoin may lead to an increase in selling pressure in the crypto market, according to an on-chain Bitcoin analyst.
In the year In an Aug. 13 post to CryptoQuant, anonymous trader XBTManager said a total of 29,206 Bitcoin (BTC) were transferred off-chain between Aug. 11 and Aug. 12 when they had been dormant for up to three years.
XBT, which has been inactive for 2-3 years, saw 18,536 BTC exchanged on August 11th, putting significant pressure on the price of Bitcoin. An additional 5,684 BTC that had been inactive for 3-6 months were also moved a few hours later.
In the year On August 12, 4,986 BTC that had been inactive for 3-12 months, along with 2,394 BTC that had been dormant for 3-5 years, were moved off-chain.
“When these long-dated bitcoins move, there is usually increased selling pressure in the market. In times of low liquidity, this can put downward pressure on prices, which is likely to continue.”
In the year In an August 14 investment note published by Cointelegraph, IG Markets analyst Tony Sycamore offered a more bullish outlook on Bitcoin in the medium term, citing strengthening macro conditions following last week's $500 billion crypto market selloff.
Sycamore said Bitcoin was “enhanced by continued risk sentiment and improved U.S. product sales” following cooler-than-expected US PPI data.
“Last week's false break below $50,000 put it in a very clean position, so we look for Bitcoin to extend the trend channel resistance near $70,000 in the coming sessions.”
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In a market report issued on August 13, Glassnode analysts described the current market as “a notable level of stability.” However, they noticed that HODLing is starting to appear among market participants.
Analysts say the crypto market is facing a period of wide “supply spread” after Bitcoin hit a new all-time high in March – a technical way of saying funds have moved too much.
“Over the past few weeks, this trend is showing early signs of a reversal, particularly in the larger wallet sizes often associated with ETFs. These larger wallets appear to be returning to the accumulation regime,” the analysts wrote.
Overall, the analysts concluded, the current on-chain situation indicates a “massive sense of guilt” among Bitcoin's owner base.
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